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    Enterprise-wide transformation for a leading Indian kitchen appliance and cookware manufacturer

    Unearthed value of INR17 crore using multiple cost optimisation levers across procurement spend
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    Highlights

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    Value recognition of INR8 crore across eight initiatives.

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    Addressed gaps in the demand and supply planning process.

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    Launched ready to assemble modular kitchen cabinets business across multiple cities.

    Client challenge

    The client wanted to setup sustainable business practices to exponentially improve revenue growth and achieve higher EBITDA.

    The client had limited view and control over the building blocks required to drive sales, such as:

    1. Incentive structures
    2. Secondary sales key performance indices
    3. Review formats
    4. Recognition programmes
    5. Sales support policies.
    Front-office challenge
    1. There was an absence of core sales support functions to drive channel management
    2. There were gaps between production and demand planning leading to comprised sales and inventory pile up
    3. The impact of marketing intervention on business had not been analysed.
    Middle-office challenge
    1. There were certain factors missing in the distribution infrastructure such as territory realignment, coverage norms, standard operating procedure (SOP) for new distributor appointment and competition data
    2. Key performance indices were not defined for key business roles
    3. There was ad hoc deployment of tech solutions due to the absence of a well-defined IT roadmap.
    Back-office challenge

    KPMG in India’s approach

    KPMG in India used a cross functional team to address the client’s challenge, involving experts from procurement, operations, supply chain, sales and marketing, finance, human resources (HR), digital and internet technology (IT).

    KPMG in India divided the programme into five different workstreams.

    Workstream 1: Go-to-market strategy

    1. Developed a transformation roadmap for sales and distribution
    2. Developed a detailed distribution and channel expansion plan
    3. Developed a channel profile and long-term plan
    4. Developed model markets to demonstrate revamped GTM before pan-India roll-out
    5. Drove formalisation of the annual operating plan and arrived at a consensus between the category plan and channel structure
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    Workstream 2: Sales and channel management

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    1. Developed channel performance management frameworks and reporting tools
    2. Designed the processes and frameworks for channel performance, selection, and onboarding (exclusive outlet, distribution, e-commerce and modern trade)
    3. Assisted the client in evaluating and negotiating with potential channel partners
    4. Introduced channel maturity elements to further the channel development journey

    Workstream 3: Marketing 

    1. Developed digital marketing strategies and frameworks for the business
    2. Created a business case for diversifying the B2B business of one product line into a B2C model as well as initiated launch of a pilot
    3. Developed a digital campaign to drive walk-ins into exclusive outlets
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    Workstream 4: Capability development

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    1. Developed key performance indices and metrices to drive new initiatives and charters
    2. Developed sales force performance management frameworks, reporting tools and processes
    3. Developed capabilities around the sales charter (supply chain, service support) to facilitate readiness, handover, and drive review cadences

    Workstream 5: Governance and infrastructure

    1. Developed a long-term sales structure for various channels as well as additional layers of support and service required for an increased business size
    2. Developed directional business requirement documents for performance tracking and distributor management systems
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    Result

    1. Value unearthing of ~ INR17 crore using multiple cost optimisation levers across procurement spend
    2. Value recognition of INR8 crore across eight initiatives
    3. Addressed the gaps in the demand and supply planning process
    4. Shifted the sales culture from primary to secondary
    5. Empowered key account managers with account bluebook as a tool of discussion
    1. Developed incentive framework based on secondary key performance indices
    2. Launched ready to assemble modular kitchen business across multiple cities
    3. Designed future IT state along with governance structure, roles, and responsibilities of key members
    4. Organisation and leadership scorecard design including key performance index design for all unique roles

    Why KPMG Connected Enterprise?

    The engagement was an enterprise transformation with interdependencies across the functions of procurement, operations, supply chain, sales and marketing, finance, human resources (HR), digital and internet technology (IT).

    The connected enterprise approach enabled the team to navigate the interdependencies in a structured way to create standardised processes and develop capabilities that can drive sustainable growth for the client firm.

    Overview of the case

    Client

    A leading kitchen appliance and cookware manufacturer in India.

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    Challenge

    Enterprise-wide transformation with interdependencies across multiple functions.

    Challenge

    Outcome

    KPMG in India unearthed value of INR17 crore using multiple cost optimisation levers across procurement spend.

    Outcome
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